Point Shaving & Fixes ·
Tim Donaghy’s Guilty Plea in the NBA Betting Scheme
In 2007, the former referee admitted using nonpublic information to recommend wagers, including on games he officiated.
On Aug. 15, 2007, former NBA referee Tim Donaghy pleaded guilty in federal court in Brooklyn to two conspiracies arising from a betting scheme that included games he officiated. He admitted using information available to him as a referee to recommend wagers and receiving cash for successful picks. The charges were conspiracy to commit wire fraud, through a scheme to deprive the NBA of his honest services, and conspiracy to transmit wagering information. He was released on $250,000 bail.
Donaghy had worked as an NBA referee for 13 years. His access extended beyond what spectators could see on the court. The league prepared schedules identifying upcoming officiating crews but withheld those assignments from the public and teams until game time. In his plea, Donaghy described knowing how officials interacted with players and called games, as well as players’ physical condition before a game. NBA rules prohibited referees from betting on NBA games or providing information to help others place bets.
The arrangement Donaghy described ran from approximately December 2006 through April 2007. He selected teams he expected to win and cover bookmakers’ point spreads; others used those selections to place wagers. Some selections concerned games he was assigned to referee. He admitted concealing the scheme from the NBA. Prosecutors said his financial interest in the games compromised his objectivity as an official.
According to a prosecutors’ affidavit reported by CNN, James Battista placed the bets and Thomas Martino served as the intermediary, receiving Donaghy’s selections in coded language. The affidavit said the payments began at $2,000 for a winning pick and rose to $5,000 because of the accuracy of his tips. Battista and Martino were arraigned on the day of Donaghy’s plea, entered no pleas and were released on unsecured $250,000 bonds. At that stage, the charges against them remained allegations, and both were presumed innocent.
Donaghy also acknowledged betting on NBA games himself, conduct that was not part of the two conspiracy charges to which he pleaded guilty. CNN reported that he was cooperating with prosecutors, and the U.S. attorney said the federal investigation remained ongoing.
NBA Commissioner David Stern had called Donaghy a “rogue isolated criminal” at a July news conference and said the episode did not involve other NBA officials. On the day of the plea, Stern promised a continuing review of the officiating program. The referees’ association also called the wrongdoing isolated while acknowledging that “a cloud has descended upon all referees.”
Donaghy described the terms of his stake plainly: “I received cash payments for successful picks but would not lose any money if a pick did not win and cover the point spread.” Then he added: “Some of my picks included games I had been assigned to referee.”